WILL & PROBATE LAW
Creating an effective succession strategy based on your individual needs can greatly facilitate your investments from acquisition transfer and/or eventual succession.
The planning process can however feel overwhelming when dealing with unfamiliar laws, language and procedures.
As an area of our expertise we can clarify and guide you through these important steps. Answer questions and concerns, with specifics on the information, documentation and processes needed, and also draft wills and provide the legally required witnesses per testator on day of signing.
Portugal currently has no inheritance or gift tax in place. Transfer of assets from the deceased to their spouses, children or parents are exempt from stamp tax.
Although there is no inheritance tax, a transfer and transaction of a real estate property is always subject to stamp tax of 0.8%, of the property´s taxable value.
Legally Adopted Children – will be recognised as direct family members.
Non Direct Heirs – in the case property is being transferred to heirs who are not spouses, children or parents of the deceased, then the percentage of stamp tax is 10.8%.
Step-parents, step-children, unmarried partners and partners who are not in a civil partnership are liable to pay stamp tax on the Portuguese assets transferred into their names. Unmarried partners who have lived together for a minimum of two years, can be considered as “married” for tax purposes if they have informed the Portuguese authorities of this fact.
Portuguese Residents – the succession law in place states that a minimum of half of all your Portuguese assets and assets you own globally (excluding foreign real estate property), will pass automatically to your spouse, biological and legally adopted children, parents and grandparents. The only way to override this forced heirship and establish specific arrangements is by making a will that is formalised at a Portuguese Notary.
We can clarify any questions you have, provide exact information on the documentation needed for the drafting of your will and provide the mandatory witnesses per testator required on the day of signing.
Successful succession plans happen well before they are needed. We invite you to contact us for an initial consultation to help create a succession plan or to better understand how best to protect your assets and investments in Portugal.